Exam 5: Constraint Management

Constraints at any step causes imbalance in the capacity of a process. As a result, the overall performance of a system is affected which in turn leads to low customer satisfaction and loss of money even with high sales level.

Figure 5.1 The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.1. What is the capacity for the A-B-C-E process route?

Any system composed of resources that are operating at maximum output will, by definition, have maximum output for the entire system.

Table 5.7 The Terminal Company is attempting to balance its assembly line of high-voltage electrical connectors. The desired output for the line is 50 connectors per hour, and the information on the work elements for this assembly line is as follows. -Use the information from Table 5.7, and assume that the most efficient line balance possible has been achieved. What is the total idle time for an eight hour work day?

________ is the maximum rate of output of a process or a system.

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

Managers should produce products with the highest contribution margins or unit sales, provided they have market demand for them.

The key to preserving bottleneck capacity is to watch them carefully and keep them as busy as practical.

Table 5.3 King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.3. Using the traditional method, which product should be scheduled first?

The most controversial aspect of line-flow layout is:

Table 5.1 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.1. Using the bottleneck method, which product should be scheduled first?

Table 5.3 King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. -Use the information in Table 5.3. Using the traditional method, what is the optimal product mix?

Use the process flow diagram to determine which of these events has the greatest net benefit.

Figure 5.1 The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.1. What is the throughput time for the A-B-D-E process route?

What is a Drum-Buffer-Rope system for planning and control?

Given the following data about an assembly line and the knowledge that we are trying to attain an output rate of 40 units per hour, what is the theoretical minimum number of stations?

The process with the least capacity is called a bottleneck if its output is less than market demand.

Paced lines require that inventory storage areas be placed between stations.

Figure 5.1 The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.1. What is the throughput time for the A-B-C-E process route?

Figure 5.1 The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process. -Use the information in Figure 5.1. What is the capacity for the A-B-D-E process route?